MarginKoala

Should I buy or lease this asset?

Enter your numbers below. Get the answer first, then Koala's next move.

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Numbers to enter
Compare the actual cash costs of ownership with the actual lease payments over the same period. Enter finance interest/fees as a dollar total if you know them rather than using a simple interest shortcut that may not match the loan.
yrs
Buy / own
$
$

Delivery, setup, registration or other acquisition costs that are real cash outflows.

$

Optional. Use the lender/loan schedule if financed. Leave 0 for a cash purchase or if comparing before finance.

$

Only costs that differ from leasing, such as maintenance or fees the lease would otherwise cover.

$

Your scenario, not a guaranteed future value.

Lease
$
$
$

Only additional costs not already included in the lease payment.

$

Use contractual end-of-term costs you expect to pay.

Koala's Calculated Result
Undiscounted net cash cost over the same period.

Add a comparison period plus either purchase costs or lease payments.

MarginKoalaKoala's Professional Opinion

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Frequently asked questions

When is buying better than leasing?

When the per-year all-in cost of ownership is lower than the per-year lease AND you have the cash to put up. Buy generally wins when the asset holds useful value beyond the financing period; lease when it does not.

Buy vs Lease

What's the right residual %?

There is no universal numeric benchmark for this decision. The right comparison depends on the industry, geography, business model, time period and exact metric definition. Use the business’s own history, economics and explicit target unless a verified benchmark matching that scope is available.

Buy vs Lease

What's the cross-over point?

Cross-over month = (asset price − residual − (finance rate × price × life)) ÷ (lease monthly − straight-line depreciation per month). The month when lease has outpaced the buy scenario — useful for picking one of the two.

Buy vs Lease

What's "finance rate" doing in this calculator?

The cost of capital to borrow for the asset — your lender's rate or your opportunity cost. Use the net rate after any tax effect; it answers the question of how much extra you're paying to finance vs. lease the asset.

Buy vs Lease

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.